Dear Common Dreams Readers: Common Dreams is a small non-profit that exists only because of the support of our readers. No advertising; no paywalls: our content is free. But our costs are real. A free and independent press is essential to the health of a functioning democracy. Independent journalism and democracy itself have never been more fragile, more at risk than now. Without your support, we will not exist. Will you join again with those readers who have come forward to make sure Common Dreams has a future?Every donation makes a difference.

More Stimulus Needed to Slow Spiraling Unemployment and Deepening Recession

For Immediate Release

More Stimulus Needed to Slow Spiraling Unemployment and Deepening Recession

WASHINGTON - With
the nation in the midst of what may be the deepest economic downturn
since the Great Depression, a new report from the Center for Economic
and policy Research (CEPR) makes the case for a third round of economic
stimulus to help put the country on the path to economic recovery.

"The Housing Crash Recession and the Case for a Third Stimulus,"
points out that many of the economic projections that policymakers have
used to form their responses to the recession are already proving to be
overly-optimistic. To counter spiraling unemployment and the turmoil in
the housing and stock markets, the paper suggests an additional
stimulus package, advocates for housing policy based on targeted
stabilization of house prices in non-bubble and deflated markets, and
the necessary correction of the dollar.

"The majority of economists and policymakers missed or downplayed the housing bubble," said report author and CEPR Co-Director Dean Baker.
"As a result, the nation was ill-prepared to deal with the severity of
the recession and previous stimulus packages were simply not enough to
put out the fires and slow the downturn."

To get money into the economy effectively and quickly, the report
proposes a stimulus package consisting, in part, of two tax credits: an
employer tax credit that would extend health care coverage and another
per worker credit for employers to increase the amount of paid time off.

To address the collapsing housing market, the paper
makes the point that housing price stabilization is a good idea, but
only in areas where there was no bubble or in which the bubble has
already deflated. Adopting a one-size-fits all solution runs the risk
of merely providing a temporary break before prices begin to plummet
again in bubble-inflated market and increases the risk of over-shooting
trend levels in non-bubble markets.

The report
also argues that for the nation to fully recover from this recession
the dollar should be allowed to fall. To address the U.S. trade
imbalance, this is a necessity. And even though the Chinese Prime
Minister has recently complained about holding U.S. Treasury bonds,
there is no cause for alarm. To keep U.S. goods from becoming
hyper-competitive in world markets, other nations will have no
alternative but to prevent the dollar from falling too far, if its
value begins to fall substantially.

###

The Center for Economic and Policy Research (CEPR) was established in 1999 to promote democratic debate on the most important economic and social issues that affect people's lives. In order for citizens to effectively exercise their voices in a democracy, they should be informed about the problems and choices that they face. CEPR is committed to presenting issues in an accurate and understandable manner, so that the public is better prepared to choose among the various policy options.

Further

In the vile wake of Charlottesville - those sweaty young white men, pasty faces contorted, screaming, "Blood and Soil!" "Jews Will Not Replace Us!" "Fuck You Faggots!" - what to say? Just this: This is racism, domestic terrorism, pure hate. This is not who we are, and this is not ok. Most vital, those "whose pigmentation matches theirs" must speak "with unflinching clarity (or) we simply amen it... They need white faces speaking directly into their white faces, loudly on behalf of love."

Common Dreams brings you the news that matters.

Sign up for Newsletter

Connect With Us

X

Your Support Makes A Difference: Over 90% of the Common Dreams budget comes from reader support. We rely on you. Will you join again with those readers who have come forward to make sure Common Dreams has a future? We can't do it without you.